You are here: Home » PTI Stories » National » News
Business Standard

AI ekes out Rs 105 cr operating profit, first time in 10 yrs

Press Trust of India  |  New Delhi 

For the first time in a decade, has reported an operating profit of Rs 105 crore in 2015-16, aided by lower fuel costs and higher passenger numbers, even as the national carrier incurred a net loss after interest of Rs 3,837 crore in the same period.

The airline, which is working to improve its financials, had an operating loss of Rs 2,636 crore in 2014-15.



During its meeting today, the board approved the financial numbers for 2015-16 and the carrier has reported an operating profit of Rs 105 crore, sources said.

This is the first time since 2007 -- when the erstwhile was merged with -- that the national carrier has made an operating profit.

Having an operating profit in a decade is an encouraging sign for the airline, which is seeking to turn around its fortunes amid stiff competition, sources said.

A decline of nearly 31 per cent in fuel costs in the last financial year compared to the year-ago period was a key factor in the airline becoming operationally profitable.

The sources said the airline's net loss after interest declined to Rs 3,837 crore in the last fiscal, from Rs 5,859 crore in 2014-15.

According to the sources, the benefits of lower fuel costs were passed on to passengers, which are also reflected in terms of lower yield during the last fiscal. Yield -- an indicator of ticket prices -- declined by 7.7 per cent.

The average ticket price last fiscal stood at Rs 8,700.

In 2015-16, carried 18 million passengers, an increase of 6.6 per cent compared to 16.88 million in 2014-15.

However, in 2015-16, the carrier saw its revenue slide to Rs 20,526 crore, from Rs 20,613 crore in 2014-15.

Non-operating expenses like interest cost and others constituted 18.4 per cent of the total cost while fuel cost accounted for 24 per cent, sources said.

Indicating improved operating performance, EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to Rs 3,587 crore last financial year, from Rs 1,436 crore in 2014-15.

Last fiscal, the airline's capacity deployment and aircraft utilisation went up by 4.8 per cent and 7.5 per cent, respectively. It had forex loss of Rs 352 crore in 2015-16.

is staying afloat on a Rs 30,000-crore bailout extended by the government.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

AI ekes out Rs 105 cr operating profit, first time in 10 yrs

For the first time in a decade, Air India has reported an operating profit of Rs 105 crore in 2015-16, aided by lower fuel costs and higher passenger numbers, even as the national carrier incurred a net loss after interest of Rs 3,837 crore in the same period. The airline, which is working to improve its financials, had an operating loss of Rs 2,636 crore in 2014-15. During its meeting today, the Air India board approved the financial numbers for 2015-16 and the carrier has reported an operating profit of Rs 105 crore, sources said. This is the first time since 2007 -- when the erstwhile Indian Airlines was merged with Air India -- that the national carrier has made an operating profit. Having an operating profit in a decade is an encouraging sign for the airline, which is seeking to turn around its fortunes amid stiff competition, sources said. A decline of nearly 31 per cent in fuel costs in the last financial year compared to the year-ago period was a key ... For the first time in a decade, has reported an operating profit of Rs 105 crore in 2015-16, aided by lower fuel costs and higher passenger numbers, even as the national carrier incurred a net loss after interest of Rs 3,837 crore in the same period.

The airline, which is working to improve its financials, had an operating loss of Rs 2,636 crore in 2014-15.

During its meeting today, the board approved the financial numbers for 2015-16 and the carrier has reported an operating profit of Rs 105 crore, sources said.

This is the first time since 2007 -- when the erstwhile was merged with -- that the national carrier has made an operating profit.

Having an operating profit in a decade is an encouraging sign for the airline, which is seeking to turn around its fortunes amid stiff competition, sources said.

A decline of nearly 31 per cent in fuel costs in the last financial year compared to the year-ago period was a key factor in the airline becoming operationally profitable.

The sources said the airline's net loss after interest declined to Rs 3,837 crore in the last fiscal, from Rs 5,859 crore in 2014-15.

According to the sources, the benefits of lower fuel costs were passed on to passengers, which are also reflected in terms of lower yield during the last fiscal. Yield -- an indicator of ticket prices -- declined by 7.7 per cent.

The average ticket price last fiscal stood at Rs 8,700.

In 2015-16, carried 18 million passengers, an increase of 6.6 per cent compared to 16.88 million in 2014-15.

However, in 2015-16, the carrier saw its revenue slide to Rs 20,526 crore, from Rs 20,613 crore in 2014-15.

Non-operating expenses like interest cost and others constituted 18.4 per cent of the total cost while fuel cost accounted for 24 per cent, sources said.

Indicating improved operating performance, EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to Rs 3,587 crore last financial year, from Rs 1,436 crore in 2014-15.

Last fiscal, the airline's capacity deployment and aircraft utilisation went up by 4.8 per cent and 7.5 per cent, respectively. It had forex loss of Rs 352 crore in 2015-16.

is staying afloat on a Rs 30,000-crore bailout extended by the government.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

AI ekes out Rs 105 cr operating profit, first time in 10 yrs

For the first time in a decade, has reported an operating profit of Rs 105 crore in 2015-16, aided by lower fuel costs and higher passenger numbers, even as the national carrier incurred a net loss after interest of Rs 3,837 crore in the same period.

The airline, which is working to improve its financials, had an operating loss of Rs 2,636 crore in 2014-15.

During its meeting today, the board approved the financial numbers for 2015-16 and the carrier has reported an operating profit of Rs 105 crore, sources said.

This is the first time since 2007 -- when the erstwhile was merged with -- that the national carrier has made an operating profit.

Having an operating profit in a decade is an encouraging sign for the airline, which is seeking to turn around its fortunes amid stiff competition, sources said.

A decline of nearly 31 per cent in fuel costs in the last financial year compared to the year-ago period was a key factor in the airline becoming operationally profitable.

The sources said the airline's net loss after interest declined to Rs 3,837 crore in the last fiscal, from Rs 5,859 crore in 2014-15.

According to the sources, the benefits of lower fuel costs were passed on to passengers, which are also reflected in terms of lower yield during the last fiscal. Yield -- an indicator of ticket prices -- declined by 7.7 per cent.

The average ticket price last fiscal stood at Rs 8,700.

In 2015-16, carried 18 million passengers, an increase of 6.6 per cent compared to 16.88 million in 2014-15.

However, in 2015-16, the carrier saw its revenue slide to Rs 20,526 crore, from Rs 20,613 crore in 2014-15.

Non-operating expenses like interest cost and others constituted 18.4 per cent of the total cost while fuel cost accounted for 24 per cent, sources said.

Indicating improved operating performance, EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) rose to Rs 3,587 crore last financial year, from Rs 1,436 crore in 2014-15.

Last fiscal, the airline's capacity deployment and aircraft utilisation went up by 4.8 per cent and 7.5 per cent, respectively. It had forex loss of Rs 352 crore in 2015-16.

is staying afloat on a Rs 30,000-crore bailout extended by the government.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard